The nation’s currency, the Naira continued its free fall as it fell at the parallel market to N658 per dollar amid higher dollar demand on Friday.
Going by the fall, the figure represents a depreciation of N38 or 6.13 percent from the N620 it traded last week.
According to Bureaux De Change operators (BDCs), they blamed the depreciation on ongoing foreign exchange (FX) supply constraints.
Traders put the buying price of the dollar at N640 and the selling price at N658, leaving a profit margin of N18.
Also, the street trader explained that the unpredictability of the market is the reason for the depreciation.
“The thing is this; they don’t give it much gap because at any time it can fall. So, by the time you buy higher, and it’s falling, and if it falls, it’s not going to be going be one or two. It’s going to be 10, 15, or 20 naira drop at a go. So, more reason for the margin,” the trader said.
Despite the continued fall of the naira, the Central Bank of Nigeria (CBN), has continued to maintain that the parallel market is not a true reflection of the country’s exchange rate.
Corroborating thr claim of the CBN, checks T the official market showed that the buying price stood at N414.72 while the selling price stood at N415.72.
At the end of its monetary policy committee meeting on Tuesday, members urged CBN not to relent in its efforts to encourage foreign exchange inflow to the economy.